Average mortgage deposit exceeds the average salary
In 62% of Britain’s housing markets, the average deposit exceeds the average salary
The latest research from eXp UK reveals that in 62% of Britain’s housing markets, homebuyers must save a deposit that exceeds a full year’s earnings, underlining just how substantial the cost of homeownership has become across large parts of the country.
eXp UK analysed average house price data* alongside average annual earnings data* across Great Britain to identify the areas where buyers are required to save more than a year’s salary for a deposit. The findings highlight the scale of the affordability challenge facing prospective homeowners nationwide.
The analysis shows that the average house price in Great Britain currently stands at £272,618 (UK HPI December 2026, latest available). With a typical deposit set at 15%, buyers are required to put down an average of £40,893. Meanwhile, the average annual salary across Britain is £40,436, which is 1.1% lower than the required deposit. As a result, buyers must save more than a full year’s earnings simply to secure a home.
Affordability pressures are evident across more than half of Britain’s regions, with the greatest strain found in the nation’s capital.
In London, the average house price sits at £551,294, requiring a 15% deposit of £82,694. By comparison, the average annual salary is £55,033, meaning a full year’s income covers just 50.3% of the deposit required.
In the South East, the average deposit exceeds annual earnings by 27.5%, followed by the South West at 25.3%, the East of England at 17.1%, the East Midlands at 2.3%, and the West Midlands at 1.3%.
In contrast, buyers in the North East earn an average salary that is 27.1% higher than the typical deposit requirement, while those in Scotland earn 24.8% more than the average downpayment.
Local Authority district breakdown
Across the 343 Local Authority districts for which salary data is available, the deposit requirement exceeds a full year’s earnings in 213 areas, equivalent to 62.1% of the total.
Head of eXp UK and Europe, Adam Day, commented:
“These figures lay bare the scale of the deposit hurdle facing today’s homebuyers. For many aspiring homeowners, the challenge is no longer just meeting mortgage affordability criteria, but accumulating a lump sum that in much of the country exceeds an entire year’s gross income.
While house price growth has moderated in some areas, deposit requirements remain closely tied to overall values, and earnings simply have not kept pace in large parts of the market. This is particularly evident across London and the South East, where even relatively strong salaries cover only a fraction of what is needed upfront. And let’s not forget that first-time buyers are having to find ways to save while also paying their rent each month.
At the same time, the regional variation we’re seeing shows that Britain’s housing market is far from uniform. In areas such as the North East and Scotland, the balance between earnings and deposit requirements is far more favourable, which continues to support buyer activity and first-time buyer demand.
If we are serious about improving access to homeownership, the conversation has to extend beyond house prices alone. Greater consideration must be given to how buyers can realistically build deposits, whether through targeted support, innovative lending solutions or a sustained focus on increasing housing supply. Without that, the gap between aspiration and reality will remain too wide for many households.”
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